100 STAT. 2118
PUBLIC LAW 99-514—OCT. 22, 1986 (o) and by inserting after subsection (j) the following new subsection: "(k) BUSINESS MEALS.—
"(1) IN GENERAL.—No deduction shall be allowed under this chapter for the expense of any food or beverages unless— "(A) such expense is not lavish or extravagant under the circumstances, and "(B) the taxpayer (or an employee of the taxpayer) is present at the furnishing of such food or beverages. "(2) EXCEPTIONS.—Paragraph (1) shall not apply to any ex-
pense if subsection (a) does not apply to such expense by reason of paragraph (2), (3), (4), (7), (8), or (9) of subsection (e)." (2) TECHNICAL AMENDMENTS.—
(A) Subsection (e) of section 274 (relating to specific exceptions to application of subsection (a)) is amended by striking out paragraph (1) and by redesignating paragraphs (2) through (10) as paragraphs (1) through (9), respectively. (B) Paragraph (3) of section 274(e), as redesignated by subparagraph (A), is amended by striking out "paragraph (3)" and inserting in lieu thereof 'paragraph (2)". (b) ADDITIONAL RESTRICTIONS ON EXPENSES FOR MEALS, TRAVEL,
AND ENTERTAINMENT.—Section 274 is amended by inserting after
the subsection added by subsection (a) the following new subsections: "(1) ADDITIONAL LIMITATIONS ON ENTERTAINMENT TICKETS.— "(1) E N T E R T A I N M E N T TICKETS.—
"(A) IN GENERAL.—In determining the a m o u n t allowable as a deduction under t h i s chapter for any ticket for any activity or facility described in subsection (d)(2), the a m o u n t t a k e n into account shall not exceed the face value of such ticket. "(B) EXCEPTION FOR CERTAIN CHARITABLE SPORTS EVENTS.—
Subparagraph (A) shall not apply to any ticket for any sports event— "(i) which is organized for the p r i m a r y purpose of benefiting a n organization which is described in section 501(c)(3) and exempt from tax under section 501(a), "(ii) all of the n e t proceeds of which a r e contributed to such organization, and "(iii) which utilizes volunteers for substantially all of the work performed in c a r r y i n g o u t such event.
vi
"(2) SKYBOXES, ETC.—
"(A) IN GENERAL.—In the case of a skybox or other priv a t e l u x u r y box leased for more than 1 event, the a m o u n t allowable a s a deduction under this chapter with respect to such events shall not exceed the s u m of the face value of non-luxury box seat tickets for the seats in such box covered by the lease. For purposes of the preceding sentence, 2 or more related leases shall be t r e a t e d as 1 lease. f,
"(B) P H A S E I N. — I n the case of—
"(i) a taxable year beginning in 1987, the a m o u n t disallowed under subparagraph (A) shall be Va of the a m o u n t which would be disallowed w i t h o u t r e g a r d to
«»; H
.
,
this subparagraph, and "(ii) in the case of a taxable year beginning in 1988, the amount disallowed under subparagraph (A) shall be % of the amount which would have been disallowed without regard to this subparagraph."
�
